Future Innovation Group, Inc. (4392) AI Stock Analysis

• Market Cap: ¥9.56B
• Dividend Yield: 1.55%
• Average Volume (3M): 263.37K
• Price to Earnings (P/E): 90.3
• Beta (1Y): 0.87
• Revenue Growth: 2.99%
• EPS Growth: -943.03%
• Country: JP
• Employees: 713
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 5.97
• Shares Outstanding: 31,593,115
• 10 Day Avg. Volume: 394,000
• 30 Day Avg. Volume: 263,373
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥306.00
• Price Target Upside: -4.97% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥306.00 ▼(-4.97% Downside)

The overall stock score of 57 reflects significant challenges in financial performance, particularly in profitability and valuation, with a negative P/E ratio. While technical analysis indicates bullish momentum, the financial and valuation concerns weigh heavily on the score. Improvements in cash flow are a positive aspect, but the company must address operational inefficiencies to enhance its financial health.

Future Innovation Group, Inc. Business Overview & Revenue Model

Company Description

Future Innovation Group, Inc., through its subsidiaries, engages in the information and communications, and equipment related businesses in Japan. The company engages in the development, sale, operation, rental and lease, and maintenance of mobile communication network products utilizing mobile communication infrastructure and mobile management systems utilizing GPS; and design and manufacture of semiconductor, automobile-related automation equipment, medical-related equipment, automatic packaging equipment, precision molds, precision machined parts, etc. It is also involved in the provision of sightseeing, taxi, and bus services; research and development, manufacture, construction, maintenance, sale, and import/export of unmanned aerial vehicles or robot control systems; and call center system, system development, sensor system, and e-commerce businesses, as well as location-based services in the transportation and logistics industry. In addition, the company engages in the design and manufacture of inspection equipment; system development of image processing equipment and automatic control equipment; development, operation, and maintenance of multimedia systems for hotel operators, semiconductor substrate business, and manufacturing equipment businesses; development of systems for logistics and consulting businesses; development of solutions related to virtual reality systems; and research and development of IoT devices, as well as 2D, 3D, and video design content businesses. Future Innovation Group, Inc. was incorporated in 2018 and is based in Oita, Japan.

How the Company Makes Money

Future Innovation Group, Inc. generates revenue through multiple streams, primarily by offering proprietary software solutions and consulting services tailored to businesses seeking to integrate advanced technologies into their operations. The company's core revenue comes from licensing fees for its software products, which are designed to optimize processes in various industries. Additionally, Future Innovation Group earns income from service contracts that provide ongoing support and updates for its solutions. Strategic partnerships with key players in the technology and energy sectors further enhance its market reach and revenue potential, allowing the company to tap into new customer bases and collaborative projects that drive additional income.

Future Innovation Group, Inc. Financial Statement Overview

Summary

The financial performance is challenged by declining revenue and profitability, with a negative net profit margin in 2024. The balance sheet shows reduced leverage but negative return on equity, indicating profitability issues. Cash flow improvements are a positive sign, but operational inefficiencies need addressing.

Income Statement

The company's income statement shows a declining trend in revenue and profitability. The gross profit margin decreased from 29.8% in 2023 to 31.1% in 2024, indicating pressure on cost management. Net profit margin turned negative in 2024 due to significant net losses, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a decline in 2024 compared to 2023, suggesting potential market or operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio improved from 1.07 in 2023 to 0.58 in 2024, indicating reduced leverage. However, the equity ratio decreased slightly from 41.9% in 2023 to 51.4% in 2024, showing a reliance on equity financing. Return on equity turned negative in 2024, highlighting profitability issues.

Cash Flow

Cash flow analysis shows improvement in free cash flow, turning positive in 2024 from a negative position in 2023. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to earnings. However, the free cash flow to net income ratio is negative due to net losses, suggesting challenges in translating earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.47B	12.02B	13.53B	12.91B	12.26B	10.33B
Gross Profit	2.90B	3.73B	4.03B	3.88B	3.27B	2.30B
EBITDA	-914.00M	-549.00M	905.00M	1.46B	1.06B	924.00M
Net Income	-1.53B	-1.41B	210.00M	685.00M	441.00M	169.00M
Balance Sheet
Total Assets	15.22B	15.89B	22.84B	21.46B	18.97B	15.29B
Cash, Cash Equivalents and Short-Term Investments	1.93B	2.61B	2.20B	2.20B	2.41B	2.34B
Total Debt	4.41B	4.76B	10.29B	8.55B	7.40B	4.71B
Total Liabilities	7.08B	7.72B	13.24B	11.76B	10.09B	6.98B
Stockholders Equity	8.14B	8.17B	9.58B	9.70B	8.86B	8.29B
Cash Flow
Free Cash Flow	0.00	2.82B	-1.12B	-1.01B	-2.33B	-1.16B
Operating Cash Flow	0.00	3.16B	-578.00M	359.00M	63.00M	412.00M
Investing Cash Flow	0.00	2.92B	-838.00M	-1.85B	-2.52B	-1.81B
Financing Cash Flow	0.00	-5.67B	1.43B	1.29B	2.51B	1.70B

Future Innovation Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 322.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4392, the sentiment is Positive. The current price of 322 is above the 20-day moving average (MA) of 310.20, above the 50-day MA of 300.10, and above the 200-day MA of 279.53, indicating a bullish trend. The MACD of 6.99 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 43.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4392.

Future Innovation Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7673	79 Outperform	8.61B	10.55	9.70%	3.22%	26.17%	35.59%
6904	68 Neutral	10.18B	20.42	1.24%	1.60%	-7.72%	0.00%
4441	68 Neutral	11.35B	16.87	24.65%	1.69%	17.60%	4.04%
4392	57 Neutral	¥9.56B	90.26		1.55%	2.99%	-943.03%
6634	51 Neutral	5.70B	-4.32	-6.69%	―	229.77%	0.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Future Innovation Group, Inc. Corporate Events

Future Innovation Group Completes Share-Based Remuneration Issuance

Future Innovation Group, Inc. has completed the payment procedures for issuing new shares as restricted share-based remuneration. This issuance involves 118,800 shares at 246 yen each, aimed at compensating directors and executive officers, which could enhance employee retention and align interests with shareholders.

Future Innovation Group Reports Strong Q1 2025 Results Despite Profit Dip

Future Innovation Group, Inc. reported a significant increase in net sales and operating profit for the first quarter of 2025, with net sales rising by 12.9% and operating profit by 49.6% compared to the previous year. However, the profit attributable to owners of the parent decreased by 45.3%. The company maintains a stable financial position with a slight increase in the equity ratio. The financial forecast for the full year 2025 indicates a positive outlook with expected growth in net sales and profits, suggesting a robust market position and potential benefits for stakeholders.

Future Innovation Group Adjusts Convertible Bond Conversion Price

Future Innovation Group, Inc. has announced an adjustment to the conversion price of its 1st Series Unsecured Convertible-Bond-Type Bonds With Share Acquisition Rights, reducing it from 415 yen to 305.80 yen. This adjustment, effective May 9, 2025, is due to the application of a conversion price adjustment clause, potentially impacting the company’s financial strategy and investor relations.